BP will update its clean fuel project strategy in Australia, according to a report.

BP Plc (LON:BP) has announced a revision of its plans for clean fuel and hydrogen production at the former oil refinery site in Western Australia.

Despite bioenergy being a key component of BP`s strategy, the company has decided to reschedule the Kwinana renewable fuels project, as reported by Bloomberg.

Since June, BP has implemented job cuts and halted 30 projects as part of a cost-cutting and returns improvement initiative, according to an internal memo obtained by the news agency.

The initial blueprint for the Kwinana Energy Hub includes two clean fuel sites: Kwinana Renewable Fuels and H2Kwinana.

Kwinana Renewable Fuels aims to produce sustainable aviation fuel (SAF) and hydrogenated vegetable oil (HVO), commonly known as renewable diesel, from a new biorefinery. H2Kwinana focuses on generating green hydrogen to meet both domestic and export demands, including decarbonizing BP’s operational site.

The project plans to integrate the new biorefinery and green hydrogen production facilities with BP’s existing import terminal and optimize the current site assets.

BP commenced the front-end engineering and design (FEED) phase for green hydrogen production at the Kwinana Energy Hub in November 2023.

The Kwinana Energy Hub, situated in Kwinana, Western Australia, was established in 1955 and functioned as a fuel refinery until early 2021.